Company MI is a major insurance office which is accountable for processing insurance claims. Despite the rapid growth, the company experiences few lags in its work flow. There is an inflow of 25,000 claims but the outflow is less than 25,000. The manager of claim processing, Mr. SC, has decided to implement JIT processing system to overcome the existing issue. Mr. SC has hired some temporary part time professionals and provides training to the worker with JIT. Cross-training exercises will also be given to workers to work within departments. The team was trying to bring standardization in the work procedure to minimize time. The team came to a conclusion that the office facilities should be changed to a group technology layout. The current layout is shown in the diagram, The layout has three departments and the claim has to flow through all departments. The number of workers required for each department varies depending on the claims. So, company MI has over 180 workers to process claims. To determine: The assumptions about personnel and equipment in new group technology cell layout.

Question

Want to see the full answer?

Answer 1

Question

Chapter 16, Problem 3CS

Summary Introduction

Introduction:

Company MI is a major insurance office which is accountable for processing insurance claims. Despite the rapid growth, the company experiences few lags in its work flow. There is an inflow of 25,000 claims but the outflow is less than 25,000. The manager of claim processing, Mr. SC, has decided to implement JIT processing system to overcome the existing issue.

Mr. SC has hired some temporary part time professionals and provides training to the worker with JIT. Cross-training exercises will also be given to workers to work within departments. The team was trying to bring standardization in the work procedure to minimize time.

The team came to a conclusion that the office facilities should be changed to a group technology layout. The current layout is shown in the diagram,

The layout has three departments and the claim has to flow through all departments. The number of workers required for each department varies depending on the claims. So, company MI has over 180 workers to process claims.

To determine: The assumptions about personnel and equipment in new group technology cell layout.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The annual requirements for a particular raw material are 2,000 units costing Re. 1 each to the manufacturer. The ordering cost is Rs. 10 per order and the carrying cost 16% per annum of the average inventory value. Find and explain the economic order quantity and the total inventory cost per annum.

Following their early success and growth, Listo hired a number of new managers and employees. In response to the expansion of staff, Listo reorganized by adding layers of supervisors and managers between executive management and line staff; however, growth occurred so rapidly that proper training was not provided to the new employees. Management was less concerned with the employees’ opinions and was more focused on production and profit. Instead of enlisting employees’ opinions, more directive orders were given. The change and increased complexity associated with adding new layers to the hierarchy resulted in the organization’s goals and objectives becoming unclear. Employees began to complain about the new bureaucratic processes and the slow pace of decision-making. While the organization has been growing in size, productivity has slowed and quality has decreased. The turnover rate is higher than it has ever been, and the number of sick days that people take has doubled over the past…